Episode 160
The impact of the 100 used car dealers joining Chunha Used Cars was significant.
Under the protection of Chunha and with incredibly favorable terms, they were making a fortune, much to the frustration of the dealers who had remained loyal to the association.
“I told you we should have joined them,” a Chunha dealer said smugly to his friends, other used car dealers, during a drinking session.
“…So you’re doing well?”
“Doing well? It’s like printing money. All I have to do is acquire the cars, and the company takes care of everything else.”
The other dealers sighed, envious of his success and his use of the word “company,” as if he were a Chunha employee. “I should have applied. I thought the conditions were too good to be true.”
“I didn’t apply because I was worried about the association’s reaction.”
The Chunha dealer smiled, seeing their regret. “You’re having second thoughts?”
“Of course. We’re doing the same job, but you’re making more money and working like a company employee, while we’re still struggling like small-time hustlers.”
“That’s why I called you here today. Listen carefully.” He lowered his voice. “There will be another recruitment drive soon.”
Their faces brightened. “Really?!”
“Shhh! Keep your voice down! This will hurt you if word gets out.”
“A-alright. How many are they recruiting?”
“300 this time. But the conditions are slightly less favorable. The guaranteed profit margin is down to 8% from 10%. But trust me, 8% is still a lot. It’s easy money. And who knows how many they’ll recruit next time or how much the conditions will change? You have to join this time!”
“Alright.”
500 applicants for the first 100 spots.
3,000 applicants for the second 300 spots.
And when we opened the application to companies for the third round, we received applications from 10,000 used car dealers and companies.
10,000 applicants for 500 spots.
“Look at this…”
I scanned the list of applicants, my eyes gleaming.
“We’ve got them.”
Many companies had applied, but four of them stood out:
Four of the thirty director-level companies that were part of the association’s leadership.
Each of them had annual sales of tens of billions of won.
Now I had a decision to make.
“Should we expose them now?”
The Korea Used Car Association had at least 50,000 members, including 30 director-level companies.
We had evidence against 10,000 applicants, including four director-level companies. It would have an impact, but it wasn’t enough.
“Or should we wait for the fourth round and then expose them?”
By then, we would have at least 20,000 applicants, and leaking the list of traitors to the association would trigger a massive internal conflict.
Accusations of betrayal, debates about the authenticity of the list… It would be a chaotic mess, and the association, a loose coalition of self-serving individuals, would crumble quickly.
I smiled. “Let’s do it properly. We’ll wait for the fourth round.”
“Should we hold a lottery?” Maru asked.
I shook my head. “No, this time, we’ll allocate 100 spots to individual dealers and the remaining 400 to companies, based on their sales ranking.”
“Sales ranking?”
“Yes.”
“But the higher their sales, the more we’ll lose.”
The dealers who joined Chunha Used Cars were profiting from our losses. The higher their sales, the greater our losses. His concern was valid.
“It doesn’t matter. We just have to endure it for two more weeks, until the fourth round.”
The Chunha Used Cars dealers were exploiting the system relentlessly. They were swapping parts during free inspections, using their friends and family to buy and sell cars at inflated prices, taking advantage of the guaranteed profit margin. It was a moral hazard.
And the new recruits, seeing their success, were following suit.
They had started cautiously, but now they were doing it openly, knowing that Chunha Used Cars wouldn’t punish them.
And I was meticulously documenting everything.
“Don’t worry, we’ll sue them all for embezzlement after the fourth round and kick them out, along with exposing the list of traitors.”
“I know, but why are we prioritizing high-sales companies and limiting the number of individual dealers?”
I smiled. “It’s a signal.”
A signal to the individual dealers that their opportunities were dwindling, that this might be their last chance, and a signal to the companies that the higher their sales, the better their chances.
“It’s a temptation for the larger companies. ‘You can join us and make a fortune.’ The number of applicants for the fourth round will be several times higher than the third round.”
“…I see.”
“Hehehe, it’s time to harvest the fruits of our labor.”
The association would be in ruins, and there would be no one left to challenge us in the used car market.
Everything was going according to plan.
As I chuckled, relishing my victory, the secretary called.
“Sir, there’s a man claiming to be the CEO of a used car company at the main gate. He’s begging to see you. I was going to send him away, but he said you’ll let him in if you hear his company’s name.”
A used car company CEO?
“Which company?”
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Changshin Used Cars, sir.
“Changshin Used Cars?”
I looked at the list of director-level companies in the Korea Used Car Association and my eyes gleamed.
“He’s on the list.”
He was a director-level company, although a low-ranking one.
But I was also puzzled. “He didn’t apply to join us. Why is he here?”
Changshin Used Cars wasn’t among the four director-level companies that had applied.
I was curious, but Chunha Group was promoting a “win-win cooperation” with the used car dealers.
It wouldn’t hurt to meet with him.
“Let him in.”
The man who entered my office bowed deeply. “It’s been a while, Chairman.”
“It’s been a while? Have we met before?”
He looked flustered that I didn’t recognize him. “Don’t you remember me, sir?”
“I’m not sure. I called you in because I was curious why the CEO of an association member company wanted to see me.”
“I’m Choi, CEO of Changshin Used Cars. I’m the one who proposed the US military base auction.”
I remembered him then, the fierce-looking used car dealer who had proposed the deal with a group of ten other dealers.
“Ah, yes, I remember now. My apologies. I’m a busy man, I can’t remember everyone.”
He said with a slightly stiff expression, his pride seemingly hurt by my words, “…It’s understandable. You’re a busy man.”
“Thank you for your understanding. So, what brings you here today?”
He hesitated and then said with a determined expression,
“I’m here to surrender.”
I said with interest, “Surrender?”
“Yes.”
“Why?”
“I’ve come to the conclusion that the Korea Used Car Association can’t win against Chunha Group.”
“Why do you think that?”
“Your financial resources, your political connections… The association might be putting up a fight now, because they have the home-field advantage, but it’s a losing battle in the long run. They think they can win, but I don’t see any chance.”
“So you’re surrendering?”
“Yes.”
I smiled. “Then you should have applied to join us. I checked, and you didn’t even apply.”
“…I thought it was a trap.”
I smiled even wider. “Why did you think that?”
He gulped, seeing that I didn’t deny it. “The conditions were too good to be true. You wouldn’t be so generous without a reason. The CEO Park I met during the US military base auction proposal wouldn’t do that.”
How much of that was true?
Was he really surrendering, or was he a spy for the association?
“Why should I believe you?”
“I have some information.”
“Tell me.”
“One of the director-level companies decided to apply to join Chunha Used Cars. It’s called Happy Used Cars. They’re planning to sabotage you from the inside, so you should reject their application.”
I glanced at the document on my desk.
‘There are four companies, not one. So the other three are real traitors, even the association’s leadership doesn’t know about them?’
It wasn’t crucial information, as I was planning to get rid of them all in two weeks anyway, but it was helpful to understand the situation within the association.
“Really?”
“Yes.”
“But there are four director-level companies that applied, not one.”
He looked flustered. “Four? Not one?”
“Yes, Happy Used Cars is one of them. What about the other three?”
“Well, that’s…”
I chuckled. “They must be the real traitors. Thank you for revealing the corruption within the association.”
I said to CEO Choi, who was sitting there speechless,
“So.”
“Yes?”
“You said you’re surrendering. What can you do for me?”
He straightened up. “I have years of experience in the used car market, and I can act as your spy within the association.”
“And?”
He lowered his voice. “I’m also the boss of a gang with over 50 members. Even Chunha Group needs someone to handle the dirty work, don’t you? I can do that for you.”
“Dirty work… do I really need someone for that?”
“Of course, it would be ideal if everything was clean and above board. But that’s not how the world works. You’ll need someone to handle the dirty work sooner or later. Just leave it to us, and we’ll take care of it discreetly.”
I shook my head. “No, you misunderstood. I meant…” I smiled. “…why bother cleaning up the mess when you can just wipe it out completely?”
“What?”
“It’s much cleaner to eradicate the problem from the beginning, root and stem. And the same goes for the association. I was planning to destroy all the director-level companies, but if I accept your surrender, your company will survive.”
I smiled gently at his pale face. “Why should I do that? It’s easier to just destroy everything.”